Additional N900 billion capital is expected to be injected into the Nigerian banking industry before the end of 2025, although the expiration of the regulatory forbearance will moderate the performance of the banks, a report by Agusto & Co. Limited has hinted.
In its “Nigerian Banking Industry Report” the firm noted that the banking industry has remained resilient, successfully navigating various global and domestic macroeconomic vagaries.
The report stated: “The industry has maintained an upward growth trajectory with the total assets and contingents projected to reach N242.3 trillion ($151.4 billion at N1600/$) by 31st December 2025 after expanding by 44.9% year on year (Y/Y) to N186.6 trillion ($121.5 billion at N1536;/$) as at 31st December 2024.
“Notwithstanding the funding pressure from the prevailing high interest rate environment and the contractionary stance of the monetary authority, the industry remained liquid with a 59.4% (FYE 2023: 43.5%) liquidity ratio.”
Agusto further said: “We believe the liquidity ratio will exceed 60% by Full Year End 2025, supported by favourable, albeit declining yields on treasury securities.
“In our view, banks will accelerate the adoption of innovative funding strategies, as reflected in the uptick in commercial paper issuances, to moderate the impact of funding pressures.
“In the first seven months of 2025, commercial papers amounting to N750 billion were issued by various players. We anticipate more issuances particularly as the prevailing yields gradually moderate in the latter part of the year.”
The report also revealed that N1.7 trillion was raised by 16 banks in 2024.
It stated: “The introduction of a new minimum paid-up capital in March 2024 drove recapitalisation activities in the Industry. Although the minimum paid-up Capital directive will not be effective until 31 March 2026, about 1.7 trillion was raised by 16 banks in 2024.
“Similarly, N800 billion was raised in the first seven months of 2025. Thus, eight banks have complied with the minimum paid-up capital directive as at 31 July 2025, ahead of the 31 March 2026 deadline.
“However, the mandatory verifications by the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) are pending on some of the capital raised. We note positively that domestic investors provided most of the capital raised by the banks in the last 19 months, reflecting the acceptability of the Industry by Nigerians.
“We anticipate the injection of an additional 900 billion as a significant number of banks strive to comply with the minimum capital directive before 31 December 2025. Thus, providing additional capital buffers for current business risks and near term growth plans,” the report added.
Additional N900 billion capital is expected to be injected into the Nigerian banking industry before the end of 2025, although the expiration of the regulatory forbearance will moderate the performance of the banks, a report by Agusto & Co. Limited has hinted.
In its “Nigerian Banking Industry Report” the firm noted that the banking industry has remained resilient, successfully navigating various global and domestic macroeconomic vagaries.
The report stated: “The industry has maintained an upward growth trajectory with the total assets and contingents projected to reach N242.3 trillion ($151.4 billion at N1600/$) by 31st December 2025 after expanding by 44.9% year on year (Y/Y) to N186.6 trillion ($121.5 billion at N1536;/$) as at 31st December 2024.
“Notwithstanding the funding pressure from the prevailing high interest rate environment and the contractionary stance of the monetary authority, the industry remained liquid with a 59.4% (FYE 2023: 43.5%) liquidity ratio.”
Agusto further said: “We believe the liquidity ratio will exceed 60% by Full Year End 2025, supported by favourable, albeit declining yields on treasury securities.
“In our view, banks will accelerate the adoption of innovative funding strategies, as reflected in the uptick in commercial paper issuances, to moderate the impact of funding pressures.
“In the first seven months of 2025, commercial papers amounting to N750 billion were issued by various players. We anticipate more issuances particularly as the prevailing yields gradually moderate in the latter part of the year.”
The report also revealed that N1.7 trillion was raised by 16 banks in 2024.
It stated: “The introduction of a new minimum paid-up capital in March 2024 drove recapitalisation activities in the Industry. Although the minimum paid-up Capital directive will not be effective until 31 March 2026, about 1.7 trillion was raised by 16 banks in 2024.
“Similarly, N800 billion was raised in the first seven months of 2025. Thus, eight banks have complied with the minimum paid-up capital directive as at 31 July 2025, ahead of the 31 March 2026 deadline.
“However, the mandatory verifications by the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) are pending on some of the capital raised. We note positively that domestic investors provided most of the capital raised by the banks in the last 19 months, reflecting the acceptability of the Industry by Nigerians.
“We anticipate the injection of an additional 900 billion as a significant number of banks strive to comply with the minimum capital directive before 31 December 2025. Thus, providing additional capital buffers for current business risks and near term growth plans,” the report added.
Additional N900 billion capital is expected to be injected into the Nigerian banking industry before the end of 2025, although the expiration of the regulatory forbearance will moderate the performance of the banks, a report by Agusto & Co. Limited has hinted.
In its “Nigerian Banking Industry Report” the firm noted that the banking industry has remained resilient, successfully navigating various global and domestic macroeconomic vagaries.
The report stated: “The industry has maintained an upward growth trajectory with the total assets and contingents projected to reach N242.3 trillion ($151.4 billion at N1600/$) by 31st December 2025 after expanding by 44.9% year on year (Y/Y) to N186.6 trillion ($121.5 billion at N1536;/$) as at 31st December 2024.
“Notwithstanding the funding pressure from the prevailing high interest rate environment and the contractionary stance of the monetary authority, the industry remained liquid with a 59.4% (FYE 2023: 43.5%) liquidity ratio.”
Agusto further said: “We believe the liquidity ratio will exceed 60% by Full Year End 2025, supported by favourable, albeit declining yields on treasury securities.
“In our view, banks will accelerate the adoption of innovative funding strategies, as reflected in the uptick in commercial paper issuances, to moderate the impact of funding pressures.
“In the first seven months of 2025, commercial papers amounting to N750 billion were issued by various players. We anticipate more issuances particularly as the prevailing yields gradually moderate in the latter part of the year.”
The report also revealed that N1.7 trillion was raised by 16 banks in 2024.
It stated: “The introduction of a new minimum paid-up capital in March 2024 drove recapitalisation activities in the Industry. Although the minimum paid-up Capital directive will not be effective until 31 March 2026, about 1.7 trillion was raised by 16 banks in 2024.
“Similarly, N800 billion was raised in the first seven months of 2025. Thus, eight banks have complied with the minimum paid-up capital directive as at 31 July 2025, ahead of the 31 March 2026 deadline.
“However, the mandatory verifications by the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) are pending on some of the capital raised. We note positively that domestic investors provided most of the capital raised by the banks in the last 19 months, reflecting the acceptability of the Industry by Nigerians.
“We anticipate the injection of an additional 900 billion as a significant number of banks strive to comply with the minimum capital directive before 31 December 2025. Thus, providing additional capital buffers for current business risks and near term growth plans,” the report added.
Additional N900 billion capital is expected to be injected into the Nigerian banking industry before the end of 2025, although the expiration of the regulatory forbearance will moderate the performance of the banks, a report by Agusto & Co. Limited has hinted.
In its “Nigerian Banking Industry Report” the firm noted that the banking industry has remained resilient, successfully navigating various global and domestic macroeconomic vagaries.
The report stated: “The industry has maintained an upward growth trajectory with the total assets and contingents projected to reach N242.3 trillion ($151.4 billion at N1600/$) by 31st December 2025 after expanding by 44.9% year on year (Y/Y) to N186.6 trillion ($121.5 billion at N1536;/$) as at 31st December 2024.
“Notwithstanding the funding pressure from the prevailing high interest rate environment and the contractionary stance of the monetary authority, the industry remained liquid with a 59.4% (FYE 2023: 43.5%) liquidity ratio.”
Agusto further said: “We believe the liquidity ratio will exceed 60% by Full Year End 2025, supported by favourable, albeit declining yields on treasury securities.
“In our view, banks will accelerate the adoption of innovative funding strategies, as reflected in the uptick in commercial paper issuances, to moderate the impact of funding pressures.
“In the first seven months of 2025, commercial papers amounting to N750 billion were issued by various players. We anticipate more issuances particularly as the prevailing yields gradually moderate in the latter part of the year.”
The report also revealed that N1.7 trillion was raised by 16 banks in 2024.
It stated: “The introduction of a new minimum paid-up capital in March 2024 drove recapitalisation activities in the Industry. Although the minimum paid-up Capital directive will not be effective until 31 March 2026, about 1.7 trillion was raised by 16 banks in 2024.
“Similarly, N800 billion was raised in the first seven months of 2025. Thus, eight banks have complied with the minimum paid-up capital directive as at 31 July 2025, ahead of the 31 March 2026 deadline.
“However, the mandatory verifications by the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) are pending on some of the capital raised. We note positively that domestic investors provided most of the capital raised by the banks in the last 19 months, reflecting the acceptability of the Industry by Nigerians.
“We anticipate the injection of an additional 900 billion as a significant number of banks strive to comply with the minimum capital directive before 31 December 2025. Thus, providing additional capital buffers for current business risks and near term growth plans,” the report added.
